City proposes fee structure for new aquatics center; planning June opening

Posted on March 8, 2024 by Jenn Rowell

The city is considering new fees for the Park and Recreation department, including those for the new aquatic and recreation center set to open in June.

Commissioners set a public hearing for March 19 on the proposed fees.

If approved, the proposed fee resolution would replace four existing resolutions related to Park and Rec fees: one for community recreation center fees, which were last updated in 2019; park rental and special event fees that were last updated in 2006; swimming pool fees that were last updated in 2014 and multi sports fees that were last updated in 2016.

The proposed fee resolution introduces a new nonresident fee for the new aquatic center.

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Staff said they’ve looked at current fees, conducted fee comparisons, used the pro forma from their consultant and looked at several cost recovery models to develop the proposed fees to provide services and programs while minimizing the impact on the general fund.

The new city aquatic center is funded with $10 million from a U.S. Defense Department grant and a $10 million match from the city.

City staff said the facility will likely need two to three years of operation to stabilize its budget.

Staff said that since developing the pro forma, there were a number of changes in wages, utility costs and inflation. They worked with their consultant in November to update numbers on best estimates, but rising costs have been a challenge.

New aquatic center on track to open in May, staff discusses operations, fees

The city has identified key positions it needs to fill to open the facility, but have combined or cut some other positions to cut expenses.

Park and Rec will review the facility budget monthly for the first year of operation to monitor and address any budget concerns, and may need to adjust the facility fees, according to staff.

During the March 5 commission work session, Park and Rec Director Steve Herrig discussed the proposed fees.

Herrig said several pots of money are being used to open the new aquatic center and that they have some fundraising dollars, but some of those are pledged over the next few years and not necessarily immediately available.

He said that they’re looking at about a remaining $375,000 in startup costs, such as furniture, security cameras, scoreboards in the gym, concession equipment and startup IT equipment.

City approves aquatic center change order

Herrig told commissioners that for the fiscal year budget, which runs July 1, 2024 through June 30, 2025, they’re showing a $200,000 deficit for the new aquatics facility.

He said the department intends to cover that through the recreation budget and not ask for additional general fund support.

He said that he expects they’ll make budget adjustments in the first year as they settle into facility and adjust operational needs.

Herrig said they’re on track to get into the building in mid-May and spend about a month training staff and getting them familiar with the new facility.

They’re targeting a June 15 public opening, Herrig said.

City receives $1 million from Scheels to name new aquatics facility

The new facility will replace the now demolished Natatorium and the existing Community Recreation Center, combining those facilities and programs into the new space in Lions Park.

Once the new facility opens, Herrig said city programs will shut down in the Rec Center around May.

The city will continue to own the building and has leased space to a daycare facility that has plans to expand within the building.

City Manager Greg Doyon has said throughout the development of the new aquatic facility that he would recommend closing of the existing Rec Center and either leasing or selling the building.

Herrig said staff has been talking to a commercial real estate agent and did a walk through of the building recently to determine the type of lease to operate the building with some revenue for the city to cover maintenance costs or whether they should sell the building outright.

City approves rec center lease for daycare [2023]

Once the commission takes action on the proposed fees for the new facility, Herrig said they’ll start selling passes and memberships.

Looking over the proposed fees during the March 5 work session, Commissioner Rick Tryon said “nothing I see here that would be a concern.”

The proposed fees for the new aquatic center memberships and passes are:

Other proposed fees for the new aquatics and recreation center are:

Herrig said that often summer is an ideal time to open an indoor pool facility since people prefer to be outside, but he said they’re getting the impression the new facility will be busy.

Doyon, city manager, said that previously, the general fund was subsidizing two facilities but since the Natatorium closed in 2018, the aquatics fund balance has improved, but he said that in his experience, aquatics are tough and public facilities often need general fund support.

Construction progressing on city’s new indoor aquatic facility [22022]

He said staff are making their best estimate on the budget for the new facility since they don’t know how the community will response and that adjustments will likely be necessary.

“This is a very big balancing act that we’re about to embark on,” Doyon told commissioners.

He said he’s concerned that the city finances haven’t fully recovered from COVID and that they’ll likely be starting the budget in a deficit again this year.

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Doyon said they have to break that cycle but to do so, they’ll have to reduce budgets of the departments that rely on general fund support, which include public safety, Park and Rec, and administration.

Commissioner Rick Tryon said that should be “hugely concerning” to everyone.

Doyon said a budget challenge it a large tax appeal that’s pending from Calumet Montana Refining.

For more background on the new indoor aquatics and recreation center, read our previous coverage:

New aquatic center on track to open in May, staff discusses operations, fees

City approves aquatic center change order

City Commission to consider indoor aquatic center change order

City receives $1 million from Scheels to name new aquatics facility

City to consider change order for new indoor aquatic facility

City approves change order for new aquatic center

Construction progressing on city’s new indoor aquatic facility

City approves contract changes for indoor aquatics center

City considering change orders for indoor aquatics center